Tax and revenue information
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If you are an Irish tax resident and domiciled individual, you should be subject to Irish tax rules on your worldwide income and gains. This includes foreign income earned abroad, such as interest income earned on deposits held in foreign bank accounts. On this page, we explain what withholding tax is and how it works at Raisin.
To find out how to file your tax return in Ireland, visit this Revenue page.
Key takeaways
We provide clear, step-by-step guides and necessary documentation to help you report foreign deposit interest to Revenue with confidence.
Most EU countries have Double Taxation Agreements with Ireland. This means that in many cases, any tax held at the source can be offset against your Irish tax liability, ensuring you aren't taxed twice on the same gains.
As a Raisin customer, you remain responsible for declaring your earned interest. Generally, this is taxed at the standard DIRT rate (currently 33%), provided it is declared correctly and on time in your annual tax return.
The information provided here is for informational and educational purposes only and does not constitute tax advice. You should consult with a qualified tax professional or adviser regarding your individual tax situation. Tax laws and regulations are complex and subject to change, and the information provided may not be applicable to your specific circumstances. We are not liable for any tax decisions or actions you take based on this information.
Tax treatment of foreign deposit interest income in Ireland
Deposit interest income earned on non-Irish deposit accounts located in the EU should be subject to Irish income tax under Case III of Schedule D, and should generally be taxable at a rate of 33%.
In certain instances, there may be withholding tax from a non-Irish bank on your interest income, and you may be able to claim additional tax relief for this foreign tax.
Where a deposit is placed with a partner bank and the account is located in Ireland, we would generally expect there to be an obligation for Irish DIRT to be operated by our partner banks. Where this is the case, our partner bank should pay the tax over to the Irish Revenue Commissioners (Revenue) on your behalf. At the moment, none of Raisin’s partner banks offer accounts in Ireland.
Please note that as an Irish domiciled and tax resident individual, you may also be subject to Irish Pay Related Social Insurance (PRSI) on your foreign interest income.
Deposit Interest Retention Tax (DIRT)
Deposit Interest Retention Tax (DIRT) is a tax levied on interest earned on deposit accounts held by Irish account holders.
Irish tax rules generally require Irish banks, or EEA licensed banks, to operate DIRT on deposit interest paid or credited to deposit accounts held in Ireland.
Where you have opened a deposit account(s) with one or more of our partner banks that are held outside Ireland, our partner banks should not be obliged to deduct DIRT on the deposit interest earned on your deposits.
Instead, as an Irish tax resident and domiciled individual, the onus is on you to report this foreign deposit interest income in your annual income tax return. You should be subject to Irish income tax under Case III of Schedule D on receipt of this interest income. If this is not paid on time when filing your annual income tax return by 31 October 2026 (or by 18 November 2026 if filing online) for the 2025 tax year, the interest income will become taxable at the higher rate of 40%.
As mentioned above, in certain circumstances, you may also be subject to PRSI on the interest you have received from the non-Irish deposit accounts. Foreign deposit interest income received should be exempt from USC.
Find out more about DIRT here.
Foreign withholding tax
Foreign withholding tax applies when interest earned on savings held in non-Irish banks is taxed at source by the country where the deposit is held. As an Irish tax resident, you are still required to declare this foreign interest on your Irish tax return, where it is typically taxed at 33%. However, Ireland has Double Taxation Agreements (DTAs) with many countries, allowing you to claim a credit for foreign tax paid—up to the amount of Irish tax due on that income. In some cases, you can reduce or eliminate withholding tax by submitting the correct documentation. The rules and rates vary by country, so it’s important to review the specific requirements for each jurisdiction.
Withholding tax and documentation required by country
The withholding tax for interest generated on deposits of private individuals in Europe is harmonised across most countries. In most cases, this withholding can be lowered or cancelled completely by presenting a certificate of tax residence. However, certain countries in which our partner banks are located may require local withholding taxes to be operated.
As a result, you may be entitled to claim tax relief for any foreign (non-Irish) tax withheld on deposit interest earned from bank accounts located in the EU or countries with which Ireland has a Double Taxation Agreement (DTA). Ireland has an extensive DTA network which includes the UK, and Irish domestic tax law generally provides that a tax credit may be available for foreign tax suffered up to the equivalent amount of Irish tax due on the total income.
Please note, you should only claim a tax credit up to the equivalent amount of Irish tax due and will not be entitled to a refund from the Irish Revenue for any additional tax withheld in the other jurisdiction. In your income tax return, you should remember to claim a credit for any additional withholding tax you have suffered during the period.
Depending on the partner bank and the country in which it is located, the documents required from customers may differ. Here you can find a brief summary of the document requirements by country. In any case, we will always remind you with plenty of time what documents are required, where to send them, and when.
Documentation and other frequently asked questions
Documentation for Raisin customers
The partner banks provide, at the expiration of the deposit or at the time of payment of the interest generated, all relevant information on interest income, applied withholding tax and exchange rate. You will receive this document in the Mailbox of your online banking.
Also, at the beginning of the year, we will provide you with a document containing all the relevant fiscal information related to the previous year that you will need to file your taxes.
Forms and liabilities
Raisin will in some cases be able to provide you with a withholding tax form which will then need to be submitted to your local tax authority, signed, and stamped and returned to the partner bank concerned. Our service in this matter is limited to forwarding the forms and communicating to you that we have done so.
We will always make every effort to ensure all information and forms required by the Irish tax authority from the countries you are investing in is up-to-date. Please bear in mind that in rare cases, a tax rule could change in any of the countries where your investments are placed via Raisin. For this reason, it is important that you contact your local tax authority or a professional tax adviser in all these matters.
Wrongly withheld taxes
Please make sure your forms are correctly filled in, have a valid signature, are in good format and are sent at the right time (not too early, not too late) to reduce the withholding tax. If you think a partner bank has wrongly withheld taxes, our Customer Services Team will be pleased to answer any questions you may have. In this regard, please note that we do not provide tax advice and, therefore, tax-related information is given on a non-reliance basis only. We strongly advise customers to seek individual tax advice in case of doubt.
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All interest rates displayed are Annual Equivalent Rates (AER), unless otherwise explicitly indicated. The AER illustrates what the interest rate would be if interest was paid and compounded once a year. This allows individuals to compare more easily what return they can expect from their savings over time. Raisin Bank, trading as Raisin, is authorised/licensed or registered by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) in Germany and is regulated by the Central Bank of Ireland for conduct of business rules.